Wes Hickman (202-224-5972) or Kevin Bishop (864-250-1417)

Washington, D.C. – U.S. Senators Elizabeth Dole and Lindsey Graham wrote to U.S. Trade Representative Susan Schwab yesterday, calling on her to defend the American textile industry from countries that engage in unfair trade practices, specifically expressing their concerns about the U.S.-Vietnam bilateral agreement. Dole and Graham have placed holds on legislation that would authorize the president to grant permanent normal trade relations status to Vietnam, which would pave the way for Vietnam to join the World Trade Organization. Dole and Graham are concerned about the potential negative impact that this agreement could have on Carolina textile jobs. “We believe that unless the government takes specific steps to ensure that the U.S. textile industry can be defended against a communist country that heavily subsidizes its textile and apparel sector, this agreement is likely to cause large-scale job losses in both of our states,” wrote Dole and Graham to Schwab. “We believe that it would be unreasonable to ask U.S. workers to compete with products manufactured under a state-run economy without at least providing an adequate mechanism for the industry to defend itself.” Dole and Graham pointed out that like China, Vietnam has a large and heavily subsidized textile sector that utilizes anti-free market principles to under-price producers in the United States. Vietnam is already one of the world’s largest exporters of textiles and apparel, and Commerce Department data confirms that Vietnam is the second largest supplier of apparel products that have been removed from quota control. Over the past five and a half years, Vietnam has increased its apparel exports by 1,186 percent in quota-free apparel categories. Dole and Graham urged Schwab to closely review all of the possible solutions to this problem and pledged to work closely with her on the issue. “The Carolinas are the heart of our nation’s textile industry… We want to ensure that this strong manufacturing tradition continues and that this industry will offer stable, good-paying jobs to our constituents well into the future,” wrote Dole and Graham. Background On May 31, the United States formalized an agreement that would pave the way for Vietnam to formally join the 149-member World Trade Organization (WTO). Congress must still vote on the WTO accession agreement for Vietnam. ###

Wes Hickman (202) 224-5972 or Kevin Bishop (864) 250-1417

WASHINGTON – U.S. Senator Lindsey Graham (R-South Carolina) today made the following statement: “The parties continue to share ideas with each other. Like all negotiations, this is and will continue to be a back-and-forth exchange of thoughts and proposals. I look forward to continuing to work with the White House and my Senate colleagues on addressing this important issue facing our nation. We share the President’s goal of enacting legislation preserving an effective CIA program to make us safe, upholding Geneva Convention protections for our troops, and passing constitutional muster.” #####

Wes Hickman (202-224-5972) or Kevin Bishop (864-250-1417)

Washington, DC - This morning, the United States and Russia signed an agreement that formally resolves liability issues which delayed construction of the Mixed Oxide (MOX) Fuel Fabrication Facility at the Savannah River Site (SRS). In 2000, the U.S. and Russia each agreed to dispose of 34 metric tons of surplus, weapons-grade plutonium by turning it into MOX fuel for use in existing commercial nuclear reactors. The MOX program is the most cost effective manner for converting excess weapons-grade plutonium into forms unusable for weapons by terrorists. Members of the South Carolina and Georgia delegations have worked tirelessly to overcome this hurdle. Having met with officials from the White House, the State Department, the Department of Energy, and the National Nuclear Security Administration the delegation made it clear that all the issues needed to be resolved so the program can move forward. "The events of today are the result of a lot of hard work and dedication by my colleagues and me," said Congressman Gresham Barrett (R-SC, 3). "This announcement is huge news for the MOX program, the Site, the state and the nation. It is further proof that the Administration joins the South Carolina and Georgia delegations in strong support of the MOX program, which is vital to our national security. I am confident that this news will alleviate any doubts that may exist in the minds of some as to the commitment behind the program. The agreement helps put all the pieces of the puzzle together and solves a major issue surrounding the delays in the MOX program. I look forward to working through the appropriation process to ensure that the US commitment is fulfilled." "This is great news for the future of SRS and the United States," said U.S. Senator Lindsey Graham (R-SC). "The MOX program will play an essential national security role in the decades to come. I appreciate the dedication of the Bush Administration and the Department of State to see these negotiations through to the end. I appreciate the work of my congressional colleagues from South Carolina and Georgia for their efforts to keep this issue at the forefront. We remain committed to seeing the MOX program fully funded and operational." "This roadblock being removed shows a strong commitment on the part of both countries to move forward," said U.S. Senator Jim DeMint (R-SC). "I'm going to continue to push for the U.S. to fulfill its commitment and proceed with the funding of the MOX Fuel Fabrication Facility." "One of the reasons why the MOX facility is so important is that it will help both countries make great strides toward keeping weapons-grade plutonium out of the hands of terrorists," said U.S. Senator Saxby Chambliss (R-GA). "I know the hard working professionals at Savannah River Site are ready and able to start work on the facility as soon as possible." "We have a world class facility in the Savannah River Site, and the agreement reached today is huge step forward," said U.S. Senator Johnny Isakson, (R-GA). "I am confident the Georgia and South Carolina delegations will continue to work hard to ensure that the MOX program is funded and operational as soon as possible." "In reaching an agreement today with Russia, we have taken a vital step in moving the MOX program forward. Our commitment to waste cleanup at the Savannah River Site remains strong, and I am confident that today's news will aid our efforts to expedite construction of the MOX facility and secure future funding," said Congressman Joe Wilson (R-SC, 2). "This clears the final hurdle for getting the MOX facility up and going at SRS. I look forward to immediately passing whatever additional measures are necessary to bring it to completion. This is a tremendous step forward for not just the CSRA, but the entire nation in national security, independence from foreign oil, and prevention of nuclear terrorism," said Congressman Charlie Norwood (R-GA, 9). ###

Wes Hickman (202-224-5972) or Kevin Bishop (864-250-1417)

U.S. Senators Charles Schumer (D-NY) and Lindsey Graham (R-SC) today formally submitted their request to Senate leadership for a vote on the Schumer-Graham Free Trade Act. Last April, The Schumer-Graham legislation received 67 votes on a procedural vote and is scheduled for an up-or-down vote before September 30th. Schumer and Graham’s letter today formally requests floor time by the end of this month. “We’ve been very patient, but have seen little progress,” Senator Schumer said. “The Senate will be voting on our bill if China doesn’t make a significant move very soon. Time is running out. I hope that Hank returns with tangible results, but if the disconnect between China’s rhetoric and actions is any guide, we’ll have no choice but to call for a vote.” “Senator Schumer and I have been patient and flexible,” said Senator Graham. “We agreed to delay a vote on our legislation on three separate occasions. Most recently, in March we agreed to delay a vote for six additional months to give the Chinese additional time to revalue their currency. We have been determined and we have been reasonable. Now, the date of our promised vote is approaching and we are sorely disappointed with China’s pace of reform.” The Schumer-Graham Bill (S. 295) allows for a 180-day negotiation period between the United States and China on currency revaluation; if the negotiations are not successful, a temporary across the board tariff of 27.5% will be applied to all Chinese products entering the United States. If the President certifies to Congress within 180 days of enactment that China has made a good-faith effort to revalue its currency upward, he may delay the imposition of the tariffs for an additional 180 days. If at the end of that 180-day period the President determines that China has developed and started actual implementation of a plan to revalue its currency, the President may delay imposition of the tariffs for an additional 12 months. The text of the letter is below: September 14, 2006 The Honorable William H. Frist Senate Majority Leader 509 Hart Senate Office Building Washington, DC 20510 The Honorable Harry Reid Senate Minority Leader 528 Hart Office Building Washington, DC 20510 Dear Majority Leader Frist and Minority Leader Reid: We are writing to you today to formally request specific time for floor debate and a vote on our China currency legislation, S. 295. The Senate committed to a vote under the unanimous consent agreement reached in April 2005, and the time has come for us to move forward on our bill. As you know, on April 6, 2005, we offered the text of S. 295 as an amendment to the State Department authorization bill. A motion was made to table our amendment, which failed by a 33-67 margin. Majorities of both parties, as well as majorities on both the Banking and Finance committees, voted against the tabling motion. At the time, we agreed via unanimous consent to delay the vote on S. 295 until the end of July 2005, provided that we receive two hours of debate and an up-or-down vote with no amendments. We also agreed not to offer our bill as an amendment to any other legislative vehicle. Since then, to show our willingness to be flexible and patient, we agreed to delay our vote on three separate occasions. Most recently, in March we agreed to delay a vote for six additional months to give the Chinese additional time to revalue their currency. In short, while we have been determined, we have also been reasonable. Now, the date in the agreement is approaching, and we are sorely disappointed with China’s pace of currency reform. In remarks preceding his trip to China, Treasury Secretary Hank Paulson stated that, “with [China’s] leadership comes responsibility.” China has clearly failed to live up to its international obligations. Since July 2005, when China allowed the yuan to appreciate by 2.1 percent and promised to allow market forces to work, the currency has only appreciated by an additional two percent. In this period, the trade deficit with China continued to accelerate. In August alone, our deficit with China reached $18.8 billion, 33 percent greater than at the same time last year. Despite China’s rhetoric that revaluing their currency will destabilize their economy, we have seen quite the opposite. China’s economy is currently growing at an 11 percent annual rate, and its inflation rate has only been 1.3 percent over the last year. Therefore, we respectfully request that you schedule floor time for debate and a vote on S. 295, as early during the week of September 25 as possible. In addition, given the importance and visibility of the issue, we also ask that you abide by your earlier assurance that the vote on S. 295 not be one of the last orders of business before Congress adjourns for the 2006 elections. Thank you for your consideration. Sincerely, Charles E. Schumer Lindsey O. Graham